Wall St. Higher on U.S.-China Trade Talk Optimism

Wall St. Higher on U.S.-China Trade Talk Optimism(Reuters) – U.S. stock index opened higher on Monday as reports of planned trade talks between the United States and China raised hopes of a potential resolution to their trade spat.

Lower-level trade talks will be held on Aug. 22 and 23, according to the Wall Street Journal, just as new U.S. tariffs on $16 billion of Chinese goods take effect, along with Beijing's retaliatory tariffs on an equal amount of U.S. goods.

Ten of the 11 major S&P sectors were higher, with the materials and industrial sectors leading the pack. The utilities index was the only laggard.

Shares of Boeing rose 0.9 percent and Caterpillar 0.4 percent.

"Low-level trade talks are coming across to the market as China expressing willingness to come to some type of terms with the United States to resolve this trade issue," said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC, New York.

At 9:52 a.m. EDT the Dow Jones Industrial Average was up 90.30 points, or 0.35 percent, at 25,759.62, the S&P 500 was up 4.63 points, or 0.16 percent, at 2,854.76 and the Nasdaq Composite was down 5.78 points, or 0.07 percent, at 7,810.56.

Nike rose 1.8 percent and was the top gainer on the Dow, after two brokerages raised their ratings on the stock.

Intel's shares dropped 1.2 percent, the most on the Dow, as Cowen & Co said the U.S. chipmaker's new security bugs were potentially a big deal for public clouds.

Tesla dropped 3 percent after Reuters reported that PIF, the Saudi Arabian sovereign wealth fund that Chief Executive Elon Musk has said could help fund a go-private deal, is in talks to invest in aspiring rival Lucid Motors Inc.

JPMorgan cuts its price target on Tesla stock, saying any deal to take the electric car company private appeared much less developed than it had earlier presumed.